What is the purpose of Uniform Franchise Offering Circular?

A Uniform Franchise Offering Circular (UFOC), now called a Franchise Disclosure Document (FDD) is a disclosure document that the Federal Trade Commission (FTC) requires franchisors to give potential franchisees before granting a franchise.

How important is the uniform franchise offering circular to all prospective franchisees?

So long as the disclosure is made in the proper manner, the franchisor can draft the terms and conditions of its franchise and its obligations to you as a franchisee in almost any manner it wishes. The first section in the UFOC is a brief history of the franchise.

When must a Uniform Franchise Offering Circular provided to a potential franchisee?

The amended Rule requires franchisors to furnish the FDD to prospective franchisees at least 14 days before the prospective franchisee signs a binding agreement or makes any payment in connection with the proposed franchise sale.

Why are contracts important in franchising?

A franchise agreement protects both sides. It protects you as the franchisee and also protects the franchisor brand. When buying a franchise you will be making a large financial investment. A signed agreement gives you rights to help safeguard your investment in your business.

What are the advantages and disadvantages of franchises?

There are many advantages of franchising, as well as disadvantages—for both franchisees and franchisors….Advantages of franchising for the franchisee

Business assistance.
Brand recognition.
Lower failure rate.
Buying power.
Profits.
Lower risk.
Built-in customer base.
Be your own boss.

How much to own a Chick Fil A?

While operating a Chick-fil-A restaurant requires a relatively modest $10,000 initial financial commitment ($15,000 CAD in Canada), it requires a holistic commitment to own and operate the business in a hands-on manner. We are in the restaurant industry – the quick-service restaurant industry, at that.